Correlation Between Angel Oak and Conestoga Mid
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Conestoga Mid at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Angel Oak and Conestoga Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Financial and Conestoga Mid Cap, you can compare the effects of market volatilities on Angel Oak and Conestoga Mid and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Angel Oak with a short position of Conestoga Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Conestoga Mid.
Diversification Opportunities for Angel Oak and Conestoga Mid
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angel and Conestoga is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Conestoga Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conestoga Mid Cap and Angel Oak is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Angel Oak Financial are associated (or correlated) with Conestoga Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conestoga Mid Cap has no effect on the direction of Angel Oak i.e., Angel Oak and Conestoga Mid go up and down completely randomly.
Pair Corralation between Angel Oak and Conestoga Mid
Assuming the 90 days horizon Angel Oak Financial is expected to under-perform the Conestoga Mid. But the mutual fund apears to be less risky and, when comparing its historical volatility, Angel Oak Financial is 3.88 times less risky than Conestoga Mid. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Conestoga Mid Cap is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 740.00 in Conestoga Mid Cap on September 14, 2024 and sell it today you would earn a total of 264.00 from holding Conestoga Mid Cap or generate 35.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Conestoga Mid Cap
Performance |
| Timeline |
| Angel Oak Financial |
| Conestoga Mid Cap |
Angel Oak and Conestoga Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Conestoga Mid
The main advantage of trading using opposite Angel Oak and Conestoga Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Conestoga Mid can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Conestoga Mid will offset losses from the drop in Conestoga Mid's long position.| Angel Oak vs. Gabelli Convertible And | Angel Oak vs. Absolute Convertible Arbitrage | Angel Oak vs. Rationalpier 88 Convertible | Angel Oak vs. Virtus Convertible |
| Conestoga Mid vs. Angel Oak Financial | Conestoga Mid vs. Prudential Jennison Financial | Conestoga Mid vs. Royce Global Financial | Conestoga Mid vs. Mesirow Financial Small |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |